Create an IT Sourcing Strategy

Stop making ad hoc sourcing decisions.

Onsite Workshop

Operating without a sourcing strategy can result in:

  • Dissatisfaction from business stakeholders
  • Rise of shadow IT
  • No procedures or principles to guide sourcing decisions
  • No understanding of the sourcing situation within the IT organization
  • Loss of opportunity to leverage vendors
  • Loss of opportunity to better utilize staff and resources

Operating with a cohesive sourcing strategy can result in:

  • A clear systematic manner of making sourcing decisions
  • Reduction in costs
  • Improved ability and increased capacity to focus on critical activities
  • Improved quality of IT services and capabilities leading to higher stakeholder satisfaction
  • Opportunities for vendors to become strategic partners

Module 1: Determine Mandate and Scope

The Purpose

  • Determine how the sourcing strategy will be utilized and what it is expected to cover. 

Key Benefits Achieved

  • The sourcing strategy project is planned and scoped to ensure that it addresses the appropriate business drivers.

Activities: Outputs:
1.1 Identify and interview target audience groups. Define project mandate.
1.2 Define the scope of the sourcing strategy.
1.3 Summarize the approach in a sourcing strategy project charter and secure approval.
  • Sourcing strategy project charter
1.4 Launch effectiveness assessments.

Module 2: Assess Sourcing Drivers and Constraints

The Purpose

  • Understand the internal and external business factors that will influence the sourcing strategy.

Key Benefits Achieved

  • The sourcing strategy will have a business foundation – understanding the business factors will make the strategy relevant and contextualizes the decisions that IT must make to better enable the business.

Activities: Outputs:
2.1 Identify business imperatives.
  • List of internal and external business drivers
2.2 Conduct a PESTLE analysis.
2.3 Conduct a business SWOT analysis.
2.4 Identify implications for the sourcing strategy and opportunities to innovate.
  • List of implications and opportunities to innovate
2.5 Begin building the strategy map.
  • Strategy map (draft)

Module 3: Evaluate Current State

The Purpose

  • Understand where the organization stands in terms of digital maturity in a holistic fashion.

Key Benefits Achieved

  • Produce a summary of digital maturity to benchmark against the target state in a holistic format.

Activities: Outputs:
3.1 Identify IT initiatives.
3.2 Conduct an IT SWOT analysis.
3.3 Define current sourcing models.
  • Evaluation of the current state of sourcing
3.4 Review effectiveness assessments.

Module 4: Develop a Target-State Vision and Identify Initiatives

The Purpose

  • Define the goals of the sourcing strategy and the final target state that the strategy needs to achieve.

Key Benefits Achieved

  • Having the target-state vision will allow the organization to plan out the initiatives needed to achieve the target state from the current state.

Activities: Outputs:
4.1 Create a list of strategic sourcing goals.
  • Strategic sourcing goals
4.2 Select sourcing criteria.
  • Sourcing criteria
4.3 Select target sourcing models.
4.4 Select transition approaches.
  • List of transition initiatives
4.5 Create a list and evaluate initiatives.

Module 5: Create a Sourcing Strategy Roadmap

The Purpose

  • Create an execution schedule based on a prioritized list of initiatives.

Key Benefits Achieved

  • Finalize the necessary transition initiatives based on the target state and the identified gaps.
  • Secure approval for the sourcing strategy.

Activities: Outputs:
5.1 Prioritize initiatives.
5.2 Assess vendor management capabilities.
5.3 Identify risks and mitigation tactics.
5.4 Create the final roadmap.
  • Sourcing strategy roadmap

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Onsite Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn’t enough, we offer low-cost onsite delivery of our Project Workshops. We take you through every phase of your project and ensure that you have a road map in place to complete your project successfully.

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